Chip giant TSMC is the newest member of the $1 trillion market-cap club
The company's Taiwanese shares surged to a record high on Friday, touching a $1 trillion valuation for the first time, while its US-traded American Depository Receipts were worth about $1.2 trillion.
The stock is up almost 50% since hitting a low in April.
The latest surge comes after strong second-quarter earnings. Much of TSMC's growth has been fueled by its lucrative niche market. As the primary AI chip supplier to top tech companies, including Apple, Nvidia, and Qualcomm, it has benefited from the robust demand that has transformed the market over the past few years.
TSMC's leaders are optimistic that this growth will continue as the company enters the second half of the fiscal year, after stating that they aren't concerned about rising competition.
"Our business in the second quarter was supported by continued robust AI and HPC-related demand" said CFO and VP of product Wendell Huang. "Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies."
The company reported year-over-year revenue increase of 38% last quarter. It also showed a 12% revenue increase and 10% net income jump from Q1.
The jump to a $1 trillion valuation comes after Nvidia, one of TSMC's top customers, made market history as the first company to reach a $4 trillion valuation earlier this month.
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